Why AI Trading Bots Fail: A Case Study in 5 Common Mistakes

A developer recounts building an AI trading bot that failed in five specific ways, including overtrading, phantom price spikes, accounting drift, miscalibrated risk thresholds, and hardcoded parameters. The bot's testnet losses highlight that AI trading success depends on robust data handling and parameter flexibility, not just model intelligence. The author argues that human ignorance of trading fundamentals is often the biggest bottleneck.